Amazon and Xealth: A Healthy Partnership
The e-commerce giant Amazon has partnered with Xealth, a Providence based health startup, reports say.
Up to today’s date, they have received approximately $8.5 million from “DFJ Venture Capital and UPMC” [1]. This “cloud-based technology for prescribing customized digital healthcare content” is “already in use at Seattle-based Providence Health and at UPMC in Pittsburg” [2].
This partnership with one of the largest and most far-reaching e-commerce sites in the world will help to bridge the gap of time between a doctor’s visit and the medication/supplies needed.
What Would the Project Do?
Essentially, “the test project would enable doctors to recommend bundles of medical products to patients while still in the hospital” [3]. Doctors will use an online portal to prescribe medication and patients will sign in from the comfort of their own home to order their medications. Through using Amazon Prime, customers/patients will have discounted costs. Additionally, this “past spring, Amazon built a team to focus on making Amazon’s Alexa voice assistant more useful in the healthcare field” [4]. Their potential using of the Alexa system could vastly help those with disabilities or those not tech-savvy to order the prescriptions easily via voice.
When Would This Go Into Action?
There is much speculation as to when this supposed project would become mainstream. It seems that “sudden and complete immersion into the healthcare system as it currently exists could taint the Amazon brand and will make the company vulnerable to regulatory risk.” [5] It seems that a gradual process awaits. It seems like the next step for the online leader, as “over the counter products are cheaper on its website than more brick and mortar stores” [6]. In addition to the already low price on Amazon, through Amazon Prime, a user could receive further discounts as well as expedited shipping for their medications and medical supplies.
Who Benefits?
Not only is it beneficial to the consumer and patient, but for doctors and hospitals as well as “a way to differentiate themselves by providing a superior customer experience.” [7] There are also seemingly health benefits as well. For example, due to the probable ability for doctors to reach out to patients through the portal, there is potential for a reminder system that would help to keep them on track. The way that this system would work and make money would be through “charging customers to license and use the software” [8]. Furthermore, there wouldn’t be a technological issue of transferring patient data etc., because “Xealth integrates with the electronic medical records software that doctors already use” [9], therefore keeping the process streamlined.
The target demographic for this project seems to match Amazon’s primary customers: people aged “… 30 and 45” [10], also the age of people raising children who would not only be looking to use the system for themselves, but for their children’s needs too.
Conclusion
Ultimately, this joint venture between Xealth and Amazon will likely disrupt and open the way the health sphere interacts with its customers, patients, doctors, nurses, and other members of the community. It may take time but Amazon is becoming an integral part of the health field.
Amazon and Xealth: A Healthy Partnership
[1] Mohgegain, Bernie. “Xealth Launches Digital Prescribing Platform, Rakes in $8.5 Million in Funding”, Healthcare IT News, http://www.healthcareitnews.com/news/xealth-launches-digital-prescribing-platform-rakes-85-million-funding.[2] Id.
[3] Zacks Equity Research. “Amazon in Talks with Xealth, Forays in to Medical Supplies”, Zacks, https://www.zacks.com/stock/news/311492/amazon-in-talks-with-xealth-forays-in-to-medical-supplies . July 13, 2018.
[4] PYMNTS, “Amazon, Xealth Two Hospitals To Test Medical Suppy Project”, PYMNTS. https://www.pymnts.com/amazon/2018/amazon-prime-xealth-hospitals-medical-supplies/. July 12, 2018.
[5] Brozak, Steve. “Amazon is about to disrupt the drug industry, but not the way most think” Forbes. https://www.forbes.com/sites/stephenbrozak/2017/10/20/amazons-invasion-looms-over-healthcare/ October 20, 2017
[6] Id.
[7] Christina Farr, “Amazon and start-up Xealth are planning a pilot where doctors would prescribe products to be delivered after patients leave the hospital”, https://www.cnbc.com/2018/07/11/amazon-providence-xealth-pilot-hospital-discharge.html, July 12, 2018.
[8] Romano, Benjamin. “Xealth Raises $8.5 to help doctors prescribe digital health apps” Xconomy, https://www.xconomy.com/seattle/2017/06/14/xealth-raises-8-5m-to-help-doctors-prescribe-digital-health-apps/ , June 14, 2017.
[9] Id.
[10] Brozak, Steve. “Amazon is about to disrupt the drug industry, but not the way most think” Forbes. https://www.forbes.com/sites/stephenbrozak/2017/10/20/amazons-invasion-looms-over-healthcare/ October 20, 2017